zee media corporation ltd share price Management discussions

The figures have been stated in millions (unless stated otherwise) in this Management Discussion and Analysis (‘MD&A). Investors are hereby informed that this discussion may contain forward looking statements that may involve risks and uncertainties including, but not limited to, risks inherent in the Companys growth strategy, dependence on certain businesses, and dependence on availability of qualified and trained manpower and other factors. The following discussion and analysis should be read in conjunction with the Companys financial statements included herein and the notes thereto.

COMPANY OVERVIEW

Zee Media Corporation Limited (ZMCL), listed on the BSE with the code 532794 and NSE as ZEEMEDIA, is a prominent player in the 24/7 news media landscape. With its diverse portfolio of television news channels, the Company has established a strong presence in the Global, National, and Regional news markets. In addition to its television news channels, ZMCL also owns digital properties within the news publishing space and operates an events and activation division. The Companys success can be attributed to several key strengths. Firstly, it boasts an extensive network of news bureaus, correspondents, and stringers spanning across the country, ensuring comprehensive coverage. Moreover, ZMCL benefits from the expertise of its experienced editorial team and well-known professionals who serve as news presenters. The Company leverages world-class technology for content creation, packaging, and broadcasting, further enhancing its competitive edge in both TV and Digital Media segments. One of ZMCLs distinguishing features is its established relationships with major national and international news agencies. This network enables the Company to collaborate with international reporters, facilitating on-ground and live reporting and significantly expanding the global reach of its global channel, WION.

In addition to its television news channels, ZMCL also owns digital properties within the news publishing space and operates an events and activation division. The Companys success can be attributed to several key strengths. Firstly, it boasts an extensive network of news bureaus, correspondents, and stringers spanning across the country, ensuring comprehensive coverage. Moreover, ZMCL benefits from the expertise of its experienced editorial team and well-known professionals who serve as news presenters.

The Company has a wide portfolio of 19 News Channels comprising of 16 TV News channels (1 Global, 4 National and 11 Regional channels), 3 digital-only News channels, and more than 30 digital brands. The digital publishing business of the Company had been consolidated under a separate WOS ‘Indiadotcom Digital Private Limited (IDPL) to bring focus on exploiting the enormous potential and growth in the digital media segment.

The TV and Digital News channels operated by the Company and its subsidiaries are:

. Name of the Channel	Primary Coverage Region / Genre	Language
1 Zee News	National	Hindi
2 Zee Business	National – Business News	Hindi
3 Zee Hindustan	National	Hindi
4 WION	Global	English
5 Zee Salaam	Pan India	Urdu
6 Zee 24 Taas	Maharashtra	Marathi
7 Zee 24 Ghanta	West Bengal	Bengali
8 Zee Punjab Haryana Himachal	Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir	Punjabi and Hindi
9 Zee Madhya Pradesh Chhattisgarh	Madhya Pradesh and Chhattisgarh	Hindi
10 Zee Rajasthan	Rajasthan	Hindi
11 Zee Delhi NCR Haryana	NCR	Hindi
12 Zee Bihar Jharkhand	Bihar and Jharkhand	Hindi
13 Zee 24 Kalak	Gujarat	Gujarati
14 Zee Uttar Pradesh Uttarakhand	Uttar Pradesh and Uttarakhand	Hindi
15 Zee Kannada News (Digital Channel launched in a Linear format in April, 2023)	Karnataka	Kannada
16 Zee Telugu News (Digital Channel launched in a Linear format in May, 2023)	Andhra Pradesh / Telangana	Telugu
17 Zee Tamil News*	Tamil Nadu	Tamil
18 Zee Malayalam News*	Kerala	Malayalam
19 Kesar TV*	Jammu and Kashmir and Ladakh	Hindi

*Digital only.

The Company has gradually expanded its basket of digital properties and has presence across various mediums including websites, social media pages and apps. In terms of the audience, it follows the same strategy as TV segment to focus on broader market along with products that cater to specific niches. Its digital portfolio includes multiple websites for niche channels which further have a multitude of language versions, sub brands, and sections catering to different audiences, as under:

. Brand	Website	Language
1 India.com	india.com	English
	india.com/hindi-news/	Hindi
2 Zee News	zeenews.com	English
	hindi.zeenews.com	Hindi
3 Zee Business	zeebiz.com/	English
	zeebiz.com/hindi/	Hindi
4 Zee Hindustan	zeehindustan.in	Hindi
5 Zee Salaam	zeesalaam.in	Hindi
6 Zee Punjab Haryana Himachal	zeephh.com	Punjabi and Hindi
7 Zee Madhya Pradesh Chhattisgarh	zeempcg.com	Hindi
8 Zee Rajasthan	zeerajasthan.com	Hindi
9 Zee Odisha	zeeodisha.com	Odia
10 Zee Delhi NCR Haryana	zeednhnews.com	Hindi
11 Zee Bihar Jharkhand	zeebiharjharkhand.com	Hindi
12 Zee Uttar Pradesh Uttarakhand	zeeupuk.com	Hindi
13 Zee 24 Taas	zee24taas.in	Marathi
14 Zee 24 Ghanta	zee24ghanta.com	Bengali
15 Zee 24 Kalak	zee24kalak.in	Gujarati
16 Zee Tamil News	zeetamilnews.com	Tamil
17 Zee Telugu News	zeetelegunews.com	Telugu
18 Zee Kannada News	zeekanadanews.com	Kannada
19 Zee Malayalam News	zeemalayalamnews.com	Malayalam
20 Kesar TV	www.kesartv.com	Hindi
21 WION	wionews.com	English
22 Bollywood Life	bollywoodlife.com	English
	bollywoodlife.com/hi/	Hindi
23 Techlusive	techlusive.in	English
	techlusive.in/hi/	Hindi
24 TheHealthsite	thehealthsite.com	English
	thehealthsite.com/hindi/	Hindi
25 Cricketcountry	cricketcountry.com	English
	cricketcountry.com/hi	Hindi
26 Screenbox	screenbox.in	English
27 Mylord	my-lord.in	English
	my-lord.in/hindi/	Hindi

The Company also has various Apps for these major properties across different languages:

Apps Brand	Language
1 Zee News	_
1.1 Zee News Live	9 Languages (Hindi, English, Bengali, Marathi, Gujarati, Kannada, Tamil,
	Telugu, Malayalam)
1.2 Zee 24Taas	Marathi
1.3 Zee Hindustan	5 Languages (Hindi, Kannada, Tamil, Telugu, Malayalam)
1.4 Zee 24 Ghanta	Bengali
1.5 Zee Odisha News	Odia
1.6 Zee 24 Kalak	Gujarati
1.7 Zee Kannada News	Kannada
1.8 Zee Tamil News	Tamil
1.9 Zee Telugu News	Telugu
1.10 Zee Malayalam News	Malayalam
2 WION News	English
3 Zee Business	Hindi and English
4 India.com News	Hindi, English and Marathi

INDIANMEDI A & ENTERTAINMENTIND USTRY

SIZE

In the Windows of Opportunity - April 2023 report from FICCI-EY, the Indian Media & Entertainment (M&E) industry is estimated to have grown by 19.9% over 1.75 trillion in 2021 to reach a size of 2.1 trillion in 2022. The same reports estimates showed the industry growing by 11.5% in 2023 and at a CAGR of 10.5% from 2022 to 2025. The size of the industry in 2025 is projected to be 2.83 trillion. As per the PwC Global Entertainment & Media Outlook 2023-27 report, the M&E industry in India is likely to touch US$ 45 billion in revenues by 2027 with the second highest pace of growth among the top 10 markets in terms of size, lagging only Indonesia. The United States of America will remain the top market in 2027 with a size of US$ 725 billion. It will be followed by China, Japan, UK and Germany in the top 5.

The key segments in the Indian Media & Entertainment industry are Television, Digital Media, Print, Filmed Entertainment, Online Gaming, Animation & VFX, Live Events, Out Of Home Media, Music and Radio in the decreasing order of their size in 2023. Television contributed 33.8% of the total industry size in 2022, however, it experienced a decline from 720 billion in 2021 to 709 billion. In a total contrast, the second largest segment, Digital Media, went up from 439 billion in 2021 to 571 billion in 2022, a growth of 30.1%. Other segments that grew at a fast pace in 2022 were Live Events (128.1%), Out Of Home Media (85%), Filmed Entertainment (84.9%), Online Gaming (33.7%) and Animation & VFX (28.9%).

The key segments in the Indian Media & Entertainment industry are Television, Digital Media, Print, Filmed Entertainment, Online Gaming, Animation & VFX, Live Events, Out Of Home Media, Music and Radio in the decreasing order of their size in 2023.

In the projection period between 2022 to 2025, the FICCI-EY report estimates that Digital Media will contribute ~40% of the incremental growth in the industrys size. The other key contributors to the incremental growth are expected to be Online Gaming at 13% and TV at 12% share, however, the fastest growing segments would be Live Events and Animation & VFX.

Based on the nature of consumption of the sector can also be classified into four verticals of Video, Experiential, Textual and Audio. The mapping of segments across these verticals would be as follows:

Video: Television, Video OTT, Short Video (AVOD)

Experiential: Online Gaming, Filmed Entertainment, Live Events, OOH

Textual: Print, Online News Audio: Radio, Music, Audio OTT

Video consumption across Indian households in 2022 was distributed as follows:

Segment	Video Consumed Via	# of Households
Digital only top-end homes, with CTV-only consumption	SVOD	2 million
Digital 1st homes with pay TV and one or more SVOD subscriptions	SVOD, Pay TV	43 million
Pay TV homes who also consume AVOD services	AVOD, Pay TV	77 million
Free TV homes who may/ not consume AVOD services	AVOD, Free TV	45 million
No access to TV or OTT	-	152 million
Total		319 million

Key Trends in the two major segments where the Company is present are as follows:

TELEVISION

With the reduction of 5 million pay TV homes in 2022, the subscription revenue in the segment dropped by 3.8% over 2021 to reach 392 billion in 2022. The pay TV universe will further shrink from 120 million to 116 million active households by 2025, as new pay TV subscribers will be offset by the shift from linear to bidirectional TV at the top-end and shift to DD FreeDish at the bottom-end.

Advertising revenue showed a YOY increase of 2% in 2022 to touch 318 billion from 313 billion in the previous year. The pricing growth for the ad revenue between 2022 to 2025 is expected to be inflationary, this is however subject to change with implementation of ad caps and regulatory restrictions on pricing.

Share of News genre in ad volumes fell from 28% in 2021 to 27% in 2022. Among other top genres, GEC and Music maintained their share, Movies saw a small dip and only Kids genre channels saw a jump.

Overall time spent on TV continued to decrease for a second consecutive year from 1,731 billion impressions (AMA) in 2020 to 1,591 billion in 2021 to 1,474 billion in 2022, a YOY drop of 7%. The decrease was seen in both, 6% slump in Hindi Speaking Media and 10% in Southern Media.

The number of channels came down from 906 in September 2021 to 885 in September 2022 with Free To Air channels dropping from 558 to 532 and Pay channels increasing from 348 to 353. The number of distribution platforms remained stable with 1,747 Multiple System Operator (MSO), 5 Direct-To-Home (DTH) and 1 Headend In The Sky (HITS) players.

DIGITAL MEDIA

Both Advertising and Subscription revenue streams experienced a spectacular growth within the Digital Media segment. The contribution only shifted marginally in favour of Advertising as it grew at a slightly faster pace of 30.3% vs. 28.6% for Subscription.

Internet penetration in India increased by ~4% to reach 866 million subscriptions by December 2022 from 834 million exactly a year ago. Out of these subscribers, there are 800 million wireless broadband subscriptions indicating a very high penetration of broadband.

Smartphone users were 538 million in 2022, increasing at a slower pace than the past, whereas fixed broadband connections were 32 million.

In terms of consumption of digital bandwidth, India is expected to see an increase of 14% CAGR from 25GB per month in 2022 to 54GB by 2028. On an average Indians spent 4.9 hours per day on phone apps in 2022, a growth of 32% over the 2019 consumption in terms of time. They were also the second highest downloaders of apps with 28.9 billion downloads in 2022.

Indians spent over 25 billion hours on entertainment apps in 2022, which is 82% of the total hours spent. The time spent on News & Information related apps was 1% of the total hours spent.

There is an explosion of content and increasing trend towards regionalisation in the OTT space. Nearly 3,000 hours of fresh original content was produced in 2022 with 50% of the shows in regional languages (up from 30% in 2020). The growth in content production was 19% on a YOY basis.

Digital advertising has grown on the back of 52% increase in ad insertions in 2022 as against 2021 with over 360 categories seeing higher digital insertions than in print, television or radio.

India saw 99 million paid video subscribers, 4.6 million audio subscribers and 1.5 million news subscribers in 2022. Digital subscribers are expected to grow at a 11% CAGR till 2025.

The number of smart connected TVs will exceed 40 million daily active users by 2025 from the current base of 25 million. ~30% of content consumed on large screens will be social, gaming, digital, etc. by 2025.

Online news had 473 million unique viewers in 2022 with most accessing news sites through web. Social media pages of news media remained a preferred medium for accessing news. Also, 63% of the news sites visitors were directed from social media platforms.

OUTLOOKA ND IMPACT OF COVID

The COVID-19 pandemic is expected to have no material adverse impact on any sector including the Media and Entertainment sector in FY2023-24.

BUSINESS OPERATIONS

Industry Outlook for 2023

With the global slowdown and tighter monetary policies likely to affect growth momentum of the Indian economy, the real GDP growth for the country was expected to moderate from 7.2% in FY2022-23 to 6.5% in FY2023-24. While the disruptions related to the COVID-19 pandemic are in the past, the Russia-Ukraine war and resulting inflationary shocks continue to cast a shadow on the economies. The monsoon, which plays a crucial role in rural economy, is likely to be affected by El Nino weather patterns in 2023. These downside risks are balanced by the improving consumer and industrys confidence in countrys economic prospects, continued investments in infrastructure, stabilizing inflation and other positive macro factors.

FICCI-EY have forecast a 11.5% growth for the Indian Media & Entertainment industry in 2023. While all segments were expected to grow, the segments that are expected to see more than the industry average growth are Digital Media (17.5%), Filmed Entertainment (12.8%), Online Gaming (23.7%), Animation & VFX (24.3%), Live Events (30.1%), and Music (13.6%). The key segment of TV is expected to grow from 709 billion in 2022 to 727 billion in 2023, a growth of 2.5%. Print and Music are also expected to grow at a pace slower than the industry average.

For the key segments Television and Digital Media, the outlook for 2023 and beyond would be majorly impacted by following factors:

Rise of new OTT platforms, proliferation of local Hindi and regional original content, availability of free and ‘freemium content on OTT and Social Media platforms, rollout of 5G and cheaper mobile phones are factors that are likely to accelerate the reduction in TV consumption and shift towards Digital Media.

Increasing income levels, rural electrification and free electricity, availability of cheaper TV sets and STBs, and Free TV are likely to expand the market for TV by deepening penetration in 150 video dark homes. The market is also likely to expand in the longer term with increasing population, urbanization and nuclearization of families.

The affordability of paid video subscriptions, bundling of OTT platforms by telcos and Internet Service Providers, rise of regional OTT players, growth in 4G and 5G enabled smartphone users, and continued affordability of data charges are some of the factors that will drive video subscription growth.

Increase in share of digital ad spends across categories is driven not only by the increasing reach of social media, OTT, and other digital platforms but also because of programmatic ads, native ads, contextual ads, and interactive ads that allow better targeting and performance evaluation.

Factors affecting online news consumption and monetization include how generative AI tools scale and use current data, ability of news platforms to build a base of sticky and loyal users, increase in hyper-local news content, etc.

Regulatory impact on both segments can be huge with factors such as implementation of 12-minute ad cap rule, incentives to increase TV and Telecom penetration, 5G rollout, and how regulators respond to convergence of content.

BROADCASTING

The Company maintains an extensive network of news bureaus, correspondents and stringers strategically positioned across the country, cementing its position as a leading media organization in terms of newsgathering capabilities. Additionally, the Company has made substantial investments in expanding its global reach by establishing correspondents in key international cities, ensuring a comprehensive coverage of news stories from around the world. Collaborations with renowned international news agencies further augment the Companys ability to access and deliver diverse content. Furthermore, the Company has implemented state-of-the-art technology within its content creation and packaging teams, facilitating efficient production and delivery of captivating content across mediums. To support its news production process, the Company employs advanced resources and equipment, including KU Band network, OB vans with ENG enablers, allows for seamless on-the-ground reporting and live broadcasts.

DISTRIBUTION

The Company has established a robust distribution network to ensure widespread availability of its channels and digital content. Through strategic partnerships and collaborations, the Company has optimized its distribution efforts to maximize synergies and enhance cost-effectiveness. This has helped us in garnering subscription revenues while also ensuring compliance with the regulatory guidelines set by Telecom Regulatory Authority of India (TRAI). As a result, the Companys channels are also offered individually as paid channels, allowing viewers to access high-quality content at a nominal charge, catering to diverse consumer preferences. The distribution of the channels of the Company were being done in partnership with the channels of Zee Entertainment Enterprises Limited (ZEEL) upto February 2023, after which the Company has established its independent distribution ecosystem, offering the most cost-effective business proposition in the news sector, setting a benchmark across the industry.

In addition to television channels, the Company embraces the digital landscape to expand its distribution reach.

Through its own websites, mobile apps (available on iOS and Android platforms), and social media channels, the Company disseminates news content to a wide spectrum of consumers, including the tech-savvy youth and the discerning top end of the market. This comprehensive digital presence enables the Company to engage with audiences across the world, providing convenient access to news and fostering an immersive viewing experience.

BUSINESS STRATEGY

The Company is focused on implementation of the following key strategies to ensure business and market share growth:

Diversification of Medium: The Company has established a strong presence in the news industry, utilizing a multi-platform approach as TV gives the highest reach and Digital and Events are the fastest growing media segments. It also helps maximize content leverage and audience engagement. The Company has expanded beyond traditional TV channels to encompass digital media, websites, mobile apps, and even events/activation campaigns. By embracing these diverse mediums, the Company is able to cater to different customer profiles and needs, offering customized content that resonates with specific audiences. The cost-effectiveness of digital media has been instrumental in the Companys ability to address market niches and launch targeted products and tailored advertising solutions without the substantial investment required for a TV channel. Additionally, the Company has focused on building event and activation properties across all its channels, facilitating deeper engagement opportunities for advertisers.

Localisation and Globalisation: Diversity of India is a challenge for a marketer and an opportunity for a media entity. With the varied language, culture, taste, food and clothing, the media consumption habits and preferences also differ in India regionally. Hence, recognizing the importance of regional markets and the growing demand for localized content, the Company has implemented a

The Company has made substantial investments in expanding its global reach by establishing correspondents in key international cities, ensuring

a comprehensive coverage of news stories from around the world robust regionalization strategy. The Companys portfolio of channels and digital platforms is strategically designed to address lucrative niches based on geography and languages. This trend aligns with the increasing preference for personalized content and the availability of sizable micro-demographic and psychographic segments across different regions. By embracing this characteristic, the Company has established itself as a pioneer in the industry, boasting a diverse portfolio of regional channels and digital properties. In addition to looking inwards, the Company has also been a pioneer in looking outward by establishing WION, as Indias first global news channel.

Content Leadership to Expand Market Share: The Company recognizes the shifting landscape of media consumption, with digital platforms gaining traction and TV audiences experiencing slower growth. To maintain its market share and appeal to diverse audiences, the Company has implemented a comprehensive content and market share strategy. A key aspect of this strategy involves synergizing content creation capabilities and integrating a packaging team to tailor content for different mediums. The Company understands the importance of delivering engaging and relevant news stories that resonate with the target groups of each channel. Localization and customized packaging, particularly for digital platforms, are essential for the Company to sustain and expand its market share. Known for its commitment to relaying stories around topical events, the Company ensures that its content explores complexity and nuances from diverse viewpoints while upholding the national interest. In response to regulatory changes and shifts in viewer behaviour, the Company continuously improves the attractiveness, scope, scale, and engagement level of its content across all channels. During significant events of global / national or regional importance, the Company focuses on comprehensive programming, including on-ground reporting, analysis, and various conclaves and forums, recognizing the significance of such events in terms of viewership and current affairs. By showcasing the struggles and narratives of common viewers across the nation and amplifying their voices, the Company forges a strong connection with its audiences.

BUSINESS STRENGTHS

Brand Equity: The Company holds a significant advantage of the renowned ‘Zee brand, which is a pioneering brand in the Indian media space. With a strong imprint in the public consciousness for over three decades, the ‘Zee brand has become deeply ingrained in the lives of countless Indians. It has come to symbolize the aspirations of the common man and enjoys a remarkable level of trust and brand recall.

Diverse Portfolio: The Companys diverse portfolio of media properties across media segments, languages, geographies and niche audience have helped it capture and retain market share and its place among industry leaders. It also acts as a risk mitigation strategy for the Company.

Key Personnel: The networks channels have made substantial investments in a highly skilled team of journalists, anchors, and production staff. This dedicated workforce ensures the creation of compelling, up-to-date, and engaging content that strikes a chord with the audience.

Diversity of India is a challenge for a marketer and an opportunity for a media entity. With the varied language, culture, taste, food and clothing, the media consumption habits and preferences also differ in India regionally.

BUSINESS OVERVIEW

During the year, the network achieved a wide overall reach across all its channels and properties, which collectively had total of 13.99 billion pageviews and 1.23 billion video views on own websites, 13.5 billion video views on YouTube channels and 11.9 billion video views on Facebook pages. The channels of the company continued to attract new viewers and retain the existing ones even after ZMCL having stepped out of the BARC rating system.

Zee News: The Companys flagship channel that was countrys first 24-hour news channel caters to the Hindi speaking audience across the country. It is known for its relevant and pathbreaking news stories and features.

The channel was given a completely new, refreshing, and uncluttered look to give an elevated experience to the viewers. The content, too, was upgraded significantly.

To celebrate the occasion of Indias 75^th Independence Day, it did a 75 hours special coverage and held a mega event ‘Zee Sammelan.

Zee News became the No. 1 Hindi News Channel on

YouTube with 361+ million video views during the year.

The channels flagship show, DNA, continued to make an impact and earned appreciation even internationally with its dedicated team of reporters and researchers continuing to consistently deliver stories that are of public interest that resonate with the common man after thorough research and analysis. Stories by DNA like Right to Repair, and unethical surcharges by Ola and Uber gained a lot of appreciation. The story ‘Bring plastic waste, take gold scheme based in South Kashmirs Sadiwara village received widespread acclaim. It created a huge social impact.

Some of the other notable coverages by the channel included Election coverages including state elections in the North East, Ukraine conflict and an exclusive of the ‘Deepotsav from ‘Ayodhya.

The channel bagged various multiple awards across different categories It also ran a campaign on its recognition as the Most Trusted Hindi News channel in TRAs Brand Trust report of 2022.

WION: Indias Global News channel that pioneered the genre of presenting the Indian viewpoint of the world and national events across the globe. Whilst WIONs in-depth coverage of global news and current affairs from a uniquely Indian lens has helped position the channel as a market leader and the countrys voice to the wider world, our clever distribution strategy exploring linear and digital partnerships via OTT platforms, smart TV apps and other connected devices has helped us establish a footprint in more than 190 countries around the world.

Some of the highlights of its reportage during the year included on-ground and syndicated coverage of Shinzo Abe Assassination in Japan, swearing-in of Ranil Wickremesinghe as Sri Lankan President, annual meeting of SCO Summit, G20 Bali Summit, Global

Tech Summit, Hero World Challenge Golf from the Bahamas, and the Football World Cup. The channel also aired 4 unique episodes covering Indias 75 years of Independence.

WIONs 5^th edition of "Global Summit" in Dubai on sustainable peace was a major success.

Among the various recognitions received by the channel during the year, the key highlights were 13 prestigious News Television awards, 6 ENBA awards, and 17 Afaqs! Future of News awards (out of a total of 23 won by the network) across different categories. The 17 wins at Afaqs! Awards included 12 golds and 5 silvers, in key categories such as ‘Best Prime Time Show, ‘Best Breaking News Story, and ‘Best Inquiry into Fake News.

WION is No. 1 English news channel in terms of video views on YouTube with 73 million video views in Mar23, much ahead of competitors. It also had 15.4 million on video views on Facebook (Source: Tubebuddy/VidiQ).

Zee Business: Networks national Business News channel producing diverse programming of public interest on the economy, markets and industry in Hindi.

The channel bagged 13 prestigious News Television awards across different categories.

It is also the most viewed Hindi business channel on social media platforms. It had 23 million video views on YouTube and 8.04 million on Facebook in Mar23 as per Tubebuddy/VidiQ.

During the year it telecast a series of special shows showcasing how investment habits and preferences of people have changed in India over 75 years of its post-independence existence. It also aired many programs around the Union budget.

Zee 24 Taas: The Marathi news channel of our network is widely appreciated by its viewers, establishing itself as a leading platform for exclusive Programming.

The channel organized "Health and Wealth Event and Conclave", for a discussion on the key aspects of living a prosperous and healthy life.

Hosted "Shiksha Conclave" where education enthusiasts, experts, and innovators discussed to explore and shape the future of education, empowering individuals and communities with the knowledge and skills needed for a brighter tomorrow.

Zee 24 Ghanta: Our offering catering to the needs of the Bengali audience had the following highlights:

Zee 24 Ghanta organised the "Ananya Samman" - a platform to appreciate and reward individuals who have selflessly contributed to the society through their exemplary humanitarian works. The on-ground event held in Kolkata was graced by various dignitaries of the city.

The channel uncovered the selection process of the under-19 district cricket team through investigative initiative called "Operation Game Over", revealing conflicts and irregularities within the selection process, raising concerns about fairness and transparency.

Provided comprehensive coverage of the ISL final and brought in-depth analysis and commentary on the match through football experts.

Zee Salaam: The channel targeted at Urdu speaking audience has been leading the genre since inception, with following major initiatives during the year:

The channel took the initiative to organize the "Emerging Jammu & Kashmir Conclave" , which focused on the sustained efforts being made to promote transparency in governance. The conclave aimed to highlight the measures taken to ensure that every rupee allocated for public welfare is utilized effectively and accounted for transparently.

Organized the "Farishtey Health Conclave", which brought together experts and enthusiasts to discuss the crucial elements of leading a prosperous and healthy life to empower individuals with knowledge and insights to make informed decisions for their well-being.

Zee Bihar Jharkhand: The channel, which covers the population of Bihar and Jharkhand, continued to win the love of the people of the region, with its various efforts:

The regional news channel held the finale of its flagship series – Emerging Jharkhand – at Goa. This event witnessed performances by regional artists, and was attended by various dignitaries from the state of Jharkhand.

The channel hosted "The Iconic Brands of Bihar Jharkhand", felicitating the achievements of iconic brands of the region who converted challenging situations into opportunities for growth and expansion in their respective areas of innovation, expertise, and emerging businesses.

Zee Hindustan: The networks 2^nd national Hindi news channel continued its focus on innovative and analytical news programming.

The channel revamped itself and in the first phase, started working in a cost-efficient model, showcasing its content with focused news and enriched visuals.

Zee Delhi NCR Haryana: This new channel was launched to cater to the Delhi, NCR and Haryana region.

The channels launch happened in the presence of Chief Ministers of Haryana and Delhi, and many other key politicians and dignitaries.

MCD Elections coverage, programming and promotion: The elections were covered extensively, and special programming was done around it. Branded canter, LED van and several electric rickshaws were deployed to cover the nooks and corners of the state. On the day of vote counting special on-ground shows from

Connaught Place were organised.

Zee DNH Shiksha Pe Samwad: Shiksha Pe Samwad was organised in Sonipat and the Chief Guest of the event, Mr. Kanwar Pal Gujjar, Education Minister (Haryana) shared his views on how the state has fared in imparting quality education and relevant infrastructure during his tenure as education minister. Several institutions and educationists were felicitated for their contributions in the education sector.

Emerging Haryana: This event was organized by the channel in Rohtak to discuss the road map development of the city and its contribution in the overall growth of state. Several policy and decision makers presented their views and had a positive dialogue with the experts and public.

Zee Madhya Pradesh Chhattisgarh: The leader in catering to the MP and Chhattisgarh markets with content that is localised and pertinent to the people of these two states.

Zee MPCG Leadership Conclave: Zee MPCG conducted the event in Delhi to shine light on emerging businesses that are achieving excellence through innovation. The event celebrated and acknowledged the inspiring stories of achievers, champions, and entrepreneurs who have exemplified leadership, innovation, and perseverance. Mr. Anurag Thakur, Cabinet Minister felicitated those dignitaries.

Zee MPCG Zameeni Mukhyamantri: The event was organised in Kondagaon and Chief Minister of Chhattisgarh Mr. Bhupesh Baghel used this as platform to have dialogue with the people of the state.

Emerging Chhattisgarh: The agenda of the event was to discuss the development of the state and it was graced by Mr. Bhupesh Baghel and his key ministers. The evening saw many interviews, panel discussions, performances by local artists.

Zee Punjab Haryana Himachal: The channel addresses the audiences across Haryana, Himachal Pradesh and J&K, besides Punjab.

Zee PHH Education Conclave: Gurmeet Singh Meet Hayer, Education Minister of Punjab was the chief guest, and he shared his vision and insight to improve the quality of education in the state.

Emerging Tricity Conclave: The conclave was organised in Mohali to celebrate the success and vision of professionals in real estate sector.

Zee 24 Kalak: A channel with a wide reach among Gujarati speaking audience that provides topical and relevant news and content.

On the backdrop of assembly elections Zee 24 Kalak did 3 months on ground canter activations to directly connect with the viewers and everyday couple of on-ground LIVE shows were organized where the political parties representatives had dialogue with the voters.

The channel organized a grand conclave – Mahasanman – in Ahmedabad to celebrate the entrepreneurial spirit of Gujarati and felicitated the achievers. Chief Minister of the state Mr. Bhupendrabhai Patel shared his insights and encouraged the entrepreneurs to excel in their respective fields.

Sankhnaad: On the backdrop of the Gujarat assembly election a day long conclave was organised in Ahmedabad. The platform was used by BJP, the ruling party to present its report card of the last 5 years and other parties presented their election manifesto.

Zee Rajasthan: The leading local news channel for the state of Rajasthan.

To reinforce the number one position in urban areas and to increase the channels rural reach an extensive outdoor and radio campaign was done. More than 100 hoardings were installed all over Rajasthan.

Zee Uttar Pradesh Uttarakhand: The innovative offering from the network for the Hindi speaking residents of UP and Uttarakhand that has established itself as the leader in a short span of time.

Extensive outdoors and van activations were planned in Uttar Pradesh to strengthen the numero uno position of the channel in the minds of the TG.

Other Highlights:

Udaan: Zee Media group channels hosted a series of ‘UDAAN – Dare to Dream events to appreciate the efforts and achievements of Indian Entrepreneurs and changemakers in their respective areas of innovation, expertise, and emerging businesses. It was graced by many dignitaries from all across the sectors like Mr. Ashwini Vaishnaw (Minister for Railways, Communications Electronics & Information Technology) and Dr. Jitendra Singh (Minister PMO, Science & Tech Earth Science, DOPT), Shekhar Suman (Actor), etc.

Motion Content Group (a GroupM company) partnered withZeeMediaNetworktopromoteandtelecastCritics Choice Awards 2023 that recognised performers in the Indian entertainment industry across short films, web series and feature films. The event was graced by many B-Town celebrities and telecast on multiple channels of the Zee Media network.

The network added many new anchors during the year across its channels to refresh the team and content.

The Company continuously strives to ensure penetration and distribution of news and views all across the Country, through news channels of all the genres and languages which include Hindi, English, Regional and International news. The Companys global channel WION has achieved widespread acceptance, not only among the Indian audience but also amongst the Indian diaspora spread globally. To further expand the reach of the channel, post the approval of the Board, the Company had incorporated a wholly owned subsidiary under the name of "Zee Media Americas LLC" on February 27, 2023, in the State of Delaware, United States of America. The Company aims to utilize this subsidiary for further distribution of its other linear channels, digital properties, and in-house content. Pending approvals for Overseas Direct Investment (ODI), no investment has been made by the Company till March 31, 2023.

Quarterly performance of networks digital properties:

Parameter	Q1	Q2	Q3	Q4	FY22-23
Page Views (Bil- lions)	3.7	3.99	3.5	2.8	13.99
Monthly Av-	294	320	311	270	299
erage Users (MAU)

Zee Digital ranked 2^nd in the news category from Apr22 to Mar23 in terms of its reach and performance (ComScore – Mar23). In Aug22 its reach was 214 million users as per ComScore.

By June 2022, some of the properties such as Zee Rajasthan (8.7 million), Zee Delhi NCR (2.4 million) achieved their highest ever users (Source: Google Analytics, Jun22).

Digital properties achieved 318 million video views in Q1FY23 (Source: Youbora Analytics).

Zee News (Hindi) regained 1^st position in Q1 FY22-23 and achieved highest ever users (70.3 million) in September‘22 while maintaining its leadership position as per ComScore. Zee 24 Taas and Health side of Zee News both got 2^nd Rank in May22 and August22 respectively in the ComScore rankings.

INTERNAL CONTROL SYSTEMS

The Company has implemented robust internal control systems appropriate for its size and nature of operations that ensure smooth functioning and adherence to relevant laws and regulations. A well-defined system of management reporting (MIS) and regular monitoring and business reviews contribute to effective decision-making, strong controls, and timely adjustments as needed. Any significant changes in the business outlook and material deviations from the annual budget are promptly reported to the Board on a quarterly basis. To bolster the internal audit framework, the Company employs a team of professionally qualified financial personnel who conduct regular audits across all business units.

HUMAN RESOURCES

The Company places a strong emphasis on its Human

Resources policies, designed to foster a high-performance and engaging workplace environment that aligns with its strategic plans. Key focus areas include acquiring the right talent, investing in training and career development, and recognizing achievements in line with the Companys vision and strategic objectives. This approach is crucial for attracting and retaining top talent in the competitive News Media industry. As of March 31, 2023, the Companys employee strength stood at 1,643, as compared to 1,818 as on March 31, 2022.

The age-wise and tenure-wise breakup of our workforce is as under:

Zee Hindustan: The networks 2nd national Hindi news channel continued its focus on innovative and analytical news programming.

RISKS & MITIGATION

Highly Competitive Intensity

In the Indian news industry, the competitive landscape is characterized by intense rivalry and fragmentation. With news broadcasting channels accounting for a significant portion of the total channels available, the competition for viewership and advertising shares is fierce. The challenge is further amplified by the emergence of alternative technology-driven distribution platforms introduced by new market players and print media companies launching digital platforms with textual and video capabilities, leading to increased market fragmentation. To thrive amidst such intense competition, the Company recognizes the need to anticipate viewer preferences and adapt accordingly. This involves creating, acquiring, commissioning, and producing compelling content that resonates with consumers. Leveraging technology to synergize across various distribution platforms is also crucial to sustain financial performance and either retain or expand the Companys market share.

REGULATORY IMP ACT ON BUSINESS MODEL

The Indian news industry operates within a regulatory framework encompassing various laws and regulations that impact the Companys business model. These regulations pertain to broadcasting, cable, advertisement, telecommunications, intellectual property, consumer protection, and competition (anti-trust). The introduction of regulatory changes, such as the New Tariff Orders (NTO) and advertising caps by the Telecom Regulatory Authority of India (TRAI), have significantly disrupted the pricing and distribution models in the industry. To address the risks arising from regulatory changes, the Company adopts an agile approach by anticipating and preparing for such changes in advance. It believes in adapting and embracing these changes while engaging with industry peers to establish a constructive dialogue with the government and regulators. Additionally, the Company may resort to legal avenues through industry bodies to challenge regulatory changes that may adversely impact its business.

SUCCESS OF NEWI NITIATIVES

The Company recognizes the need for continuous innovation and launch of new properties / initiatives is an imperative to maintain its leadership in the media industry. It also understands that risk of failure is inherent in any new launch or initiative. External factors beyond the Companys control can behave differently than anticipated, potentially requiring the Company to adjust its plans and leading to delays in achieving success. Such failures or

Thorough planning, including the development of backup strategies, detailed market research, and the formation of high-performing teams, is crucial to minimize the probability of failure. delays can result in significant financial losses. To address these risks, the Company takes proactive measures to mitigate potential negative impacts. Thorough planning, including the development of backup strategies, detailed market research, and the formation of high-performing teams, is crucial to minimize the probability of failure. The Company sets clear milestones to determine when it may be necessary to discontinue initiatives in order to minimize losses. Additionally, the Company ensures that the scale of potential losses does not jeopardize its overall financial performance or long-term future.

PREDICTABILITY OF ADVERTISEMENT INCOME

The Company, like other News Publishing and Broadcasting companies in the Indian news industry, heavily relies on advertising, which contributes nearly 95% of its revenue. However, the unpredictability of advertising income poses a significant risk, as the Company has limited control over changes in the macro and external environment that greatly influence advertising spends by various sectors. To mitigate this risk, the Company employs several strategies. Firstly, the Company focuses on viewership and works towards increasing its audience base. By diversifying its advertiser pool and customizing products and packages, the Company aims to protect and grow its share in advertising spends. Additionally, the Company strives to increase its subscription revenue, reducing its reliance solely on advertising income.

ABILITY TO HIRE AND RETAIN SKILLED MANPOWER

The Media sector relies heavily on personalities and creativity, hence, execution of business strategies, implementation and, most importantly, the content creation by the Company heavily depends on motivated, capable, and right-skilled workforce. Audience facing roles are critical in building loyalty among viewers whether it is news presenters or editors or journalists, hence they need to be among the best in the industry for the companys success. Also, departure of star performers in such roles may have an outsized impact on the Companys performance. The Company mitigates these risks by developing a large talent pool and having a well-defined succession and transition plans to handle departures. It also endeavours to have the necessary HR policies to be attract and retain the best talent in the industry. With its diverse portfolio of media properties, it can offer long-term growth opportunities and wide canvas for the talents development.

NTELLE I CTUAL PROPERTY AND PROPRIETARY RIGHTS PROTECTION

The Companys trademarks, copyrighted content, and other intellectual property are its assets that it can monetize to generate ongoing revenue. Hence, safeguarding against misuse of these IP assets and its rights is very important. However, there is a possibility that these rights could be challenged, invalidated, or circumvented, resulting in detrimental consequences such as loss of viewership, inability to fully capitalize on its content, and damage to its reputation. To mitigate these risks, the Company implements effective policies that regulate the usage of protected internal and external intellectual property. It also proactively invests in awareness measures to educate employees and stakeholders about the importance of IP protection. It also relies on the IP-related laws and regulations to safeguard against misuse of its IP. In the event of any litigation arising from such situations, the Company collaborates with competent lawyers to effectively manage legal proceedings and protect its rights.

EXPOSURE TO LITIGATION/ LIABILITY CLAIMS

New media companies face a tangible risk of litigation and claims arising from claims of regulators, activists, and audience related to broadcasting or publication of content, which is defamatory, offensive, prohibited, false, or deceptive in their opinion. To mitigate this risk, the Company employs stringent measures to ensure reliability and authenticity of the contents source and subjects it content to comprehensive editorial oversight to prevent dissemination of problematic material. Furthermore, the Company has established dedicated teams equipped to handle such claims through legal channels, ensuring appropriate recourse is pursued. Additionally, the Company has taken steps to secure sufficient insurance coverage, safeguarding its financial interests in the event of any legal challenges.

The Company employs stringent measures to ensure reliability and authenticity of the contents source and subjects it content to comprehensive editorial oversight to prevent dissemination of problematic material.

FINANCIALS ANDFIN ANCIALP OSITION

Standalone and Consolidated Financials as on March 31, 2023:

The table below presents Standalone and Consolidated Financials for the Current and Previous Financial Years.

Profit and Loss account for the year ended	Standalone		Consolidated
	2023	2022	2023	2022
Revenues	_	_	_	_
Revenue from operations	5,169.27	6,548.82	7,206.25	8,668.63
Other income	206.35	73.16	191.15	56.61
Total Revenues	5,375.62	6,621.98	7,397.40	8,725.24
Expenses	_	_	_	_
Operational cost	1,063.49	1,072.33	1,421.12	1,294.20
Employee benefits expense	1,787.78	1,752.49	2,616.98	2,199.93
Other expenses	1,686.88	2,087.70	2,512.03	2,637.94
Total Expenses	4,538.15	4,912.52	6,550.13	6,132.07
Operating Profit	837.47	1,709.46	847.27	2,593.17
Finance costs	266.73	365.70	296.72	378.07
Depreciation and amortisation expense	629.07	675.75	916.51	848.60
Profit/(loss) before exceptional items and tax	(58.33)	668.01	(365.96)	1,366.50
Share of profit / (loss) of associates	-	-	(51.70)	25.89
Exceptional Items (net)	(388.64)	426.68	(309.94)	(2,119.45)
Profit/(loss) before tax	(446.97)	1,094.69	(727.60)	(727.06)
Less: Tax expense	3.02	259.19	(39.57)	450.10
Profit/(loss) after tax	(449.99)	835.50	(688.03)	(1,177.16)
Profit/(loss) after tax before minority interest	(449.99)	835.50	(688.03)	(1,177.16)
Profit/(loss) after tax	(449.99)	835.50	(688.03)	(1,177.16)
Other comprehensive income (OCI)	_	_	_	_
tems that will not be reclassified to I profit or loss	_	_	_	_
Re-measurement gains / (losses) of de- fined benefit obligation	(0.69)	2.42	(2.04)	6.27
Income tax effect on above	0.17	(0.61)	0.52	(1.58)
Share of OCI of associates	-	-	0.01	(0.02)
Other comprehensive income / (loss) for the year	(0.52)	1.81	(1.51)	4.67
Total comprehensive income / (loss) for the year	(450.51)	837.31	(689.54)	(1,172.49)
Earnings per equity share of 1 each fully paid up	_	_	_	_
- Basic ()	(0.72)	1.47	(1.10)	(2.07)
- Diluted ()	(0.72)	1.45	(1.10)	(2.07)

 

Balance Sheet as at	Standalone		Consolidated
	2023	2022	2023	2022
Assets	_	_	_	_
Non-current assets	_	_	_	_
Property, plant and equipment	1,332.73	1,341.58	1,649.51	1,702.95
Capital work-in-progress	-	5.58	-	5.58
Right-of-use assets	101.88	290.31	118.80	346.19
Goodwill	-	-	47.91	47.91
Other intangible assets	112.78	152.01	1,585.84	1,188.13
Intangible assets under development	16.86	-	22.48	-_
Investment in associates	109.60	301.36	109.60	274.35
Financial assets	_	_	_	_
Investments	4,222.68	3,122.68	473.31	525.00
Other financial assets	47.28	63.86	71.04	77.91
Non-current tax assets (net)	146.95	10.28	199.75	20.05
Deferred tax assets (net)	275.43	253.49	372.74	283.91
Other non-current assets	1,705.15	27.21	1,706.17	38.18
_	8,071.34	5,568.36	6,357.15	4,510.15
Current assets	_	_	_	_
Financial assets	_	_	_	_
Trade receivables	1,094.53	2,209.64	1,402.67	2,381.96
Cash and cash equivalents	29.49	31.79	65.99	270.35
Bank balances other than cash and cash equivalents	70.01	89.44	73.77	89.95
Loans	-	305.00	-	-
Other financial assets	176.20	2,028.12	274.11	2,124.11
Other current assets	169.20	166.06	525.60	347.06
_	1,539.43	4,830.05	2,342.14	5,213.43
Non-current assets held for sale	26.70	-_	26.70	-_
Total	9,637.47	10,398.41	8,725.99	9,723.58
_	_		_	_
Equity and Liabilities	_	_	_	_
Equity	_	_	_	_
Equity share capital	625.43	625.43	625.43	625.43
Instruments entirely equity in nature	-	-	-	-
Other equity	5,003.19	5,453.70	3,247.83	3,937.37
_	5,628.62	6,079.13	3,873.26	4,562.80
Non-current liabilities	_	_	_	_
Financial liabilities	_	_	_	_
Borrowings	1,203.64	1,622.45	1,206.09	1,622.45
Lease Liabilities	9.92	0.84	17.45	39.81
Provisions	255.43	301.98	321.49	353.89
Deferred tax liabilities (net)	-_	-	-	18.52
_	1,468.99	1,925.27	1,545.03	2,034.67
Current liabilities	_	_	_	_
Financial liabilities	_	_	_	_
Borrowings	751.55	515.54	752.34	515.54
Lease Liabilities	6.03	245.78	16.71	263.57
Trade payables	253.44	250.81	778.78	522.50
Other financial liabilities	1,306.72	1,114.45	1,470.24	1,463.23
Other current liabilities	200.34	203.51	264.47	282.13
Provisions	14.00	19.22	17.38	22.67
Current tax liabilities (net)	7.78	44.70	7.78	56.47
	2,539.86	2,394.01	3,307.70	3,126.11
Total	9,637.47	10,398.41	8,725.99	9,723.58

We are pleased to present the detailed analysis of Consolidated Financials of the Company for the year ended 31 March, 2023 vis-?-vis 31 March, 2022.

REVENUE FROM OPERATIONS

The Operating Revenues of the Company decreased by 16.9%, from 8,668.63 million in FY22 to 7,206.25 million in FY23. The Companys revenue stream consists of two major components, viz., Advertisement Income and Subscription Income. It also earns a small amount of income from other sources such as Sale of Programs and Content and the Channel Management fees. The Advertisement revenue contributes the lion share of revenue with a contribution of 94.5% in FY23.

The Company suffered a major dip in the revenue from Advertising in the second half of the financial year, wherein the decline was 35% as against an increase of 6.8% in the first half, in line with the overall news industry.

OTHERI NCOME

Other Income more than tripled to 191.15 million in FY23 from 56.61 million in FY22, largely because of the liabilities and excess provisions written back.

OPERATIONAL COST

The increase in Operational Costs has been largely due to increased costs of hiring news gathering services owing to technology upgrades, besides an adverse exchange rate and the digital business assuming full scale operation led to the costs going up by 9.8% from 1,294.20 million to

1,421.12 million in FY23.

EMPLOYEE BENEFIT EXPENSES

The employee expenses also maintained an upward trajectory as the market for talent has become extremely competitive with proliferation of media companies across multiple segments. The Company believes in investing and retaining talent, as employees are the key assets for a Media Company, and increase in compensation besides expansion of business operations has contributed to the increase in costs. The Employee Benefit Expenses have jumped 19.0% to touch 2,616.98 million in FY23 from

2,199.93 million in FY22.

FINANCE COST

As the Company has managed to reduce its overall borrowings and optimise the capital costs, there is a 21.5% reduction in the Finance Cost from 378.07 million in FY22 to 296.72 million in FY23.

DEPRECIATION AND AMORTISATION EXPENSE

The Depreciation cost increased by 8.0% from 848.60 million to 916.51 million in FY23, primarily due to the amortisation of intangible assets.

OTHERE XPENSES

Other expenses which include all Administrative, Selling and Distribution expenses, were lower by 4.8% and dropped from 2,637.94 million in FY22 to 2,512.03 million in FY23. To improve its reach and building its market position, the Company had spent on Marketing, Distribution, Business Promotion and Publicity Expenses during FY22, which was not aggressively done in FY23, lowering the costs by 113.74 million, from 826.58 million in FY22 to 712.84 million in FY23, while the remaining expenses were only marginally lower (by 0.7%) from 1,811.33 million to 1,799.25 million. The network kept the advertisers faith by innovative product and brand placement.

EXCEPTIONAL ITEMS

Exceptional Items (costs) of 309.94 million comprised of the following two components:

Further impairment in value of goodwill in the Companys investments in associates Today Merchandise Private Limited (TMPL) and Today Retail Network Private Limited (TRNPL) amounting to 108.33 million and 4.73 million respectively.

Additionally, a matter of prudence, the Company has made a provision for bad and doubtful receivables from TMPL to the tune of 196.88 million.

TAX EXPENSE

In line with the lower operating profits, the current tax charge for the year came down drastically from 473.61 million to 67.27 million in FY23. In addition, the deferred tax credit amount was much higher at 106.84 million as against 23.51 million in the previous financial year.

PROFITABILITY

The profitability at EBITDA, EBIT and PBT levels was lower than the previous financial year mainly due to increasing costs even amidst a substantial drop in revenue, which affected the operating profitability. The recovery at PBT level was on account of minimisation of Exceptional Losses and the Net Loss After Tax for the period was lower by 41.6% due to reduction in taxes by 108.8%.

FINANCIAL POSITION

ASSETS

Non-Current Assets

The block of tangible (Property, plant, and equipment) and intangible assets including capital work-in-progress and Right-Of-Use-assets stands at 3,424.55 million, up by

133.80 million, from 3,290.75 million in FY22, primarily due to increase in intangibles upon the digital business assuming full-fledged operations. The Company has also decided to sell four plots of land in its possession and has therefore classified them as Non-current assets held for sale on its balance sheet with a value of 26.70 million.

Investment in associates of 274.35 million at the end of FY22 further reduced to 109.60 million due to additional impairment of the goodwill in the two associate entities engaged in E-commerce business (Today Merchandise Private Limited and Today Retail Network Private Limited), in which the Company has 49% equity stake.

FINANCIAL ASSETS

(i) Non-current Investments decreased from 525.00 million to 473.31 million, denoting redemption of certain investments.

(ii) Other Non-current financial assets decreased marginally by 6.87 million to 71.04 million from 77.91 million, primarily due to reduction in deposits.

Non-current income tax assets have increased by 179.70 million to 199.75 million due to taxes deducted at source.

Deferred tax assets (Net) have increased by 107.35 million due to temporary differences, mainly arising on account of differential depreciation on property, plant and equipment and intangible assets as per the Income Tax Act, 1961 / the Companies Act, 2013, allowances for doubtful debts and advances, business losses and expenses disallowed under section the Income Tax Act, 1961.

Other non-current assets have risen by 1,667.99 million, reflecting the recognition of 1,700.00 million, which is the value of identified trademarks of DMCL yet to be assigned as on 31^st March 2023 in line with the DMCL settlement agreement, as capital advances.

CURRENT ASSETS

Financial assets

(i) Trade receivables have been substantially reduced by 41.1% to 1,402.67 million in FY23 from 2,381.96 million in FY22, showing the results of efficient collection practices.

(ii) Cash and cash equivalents and Other Bank Balances have decreased by 220.54 million, due to utilisation of liquid assets towards repayment of debt and investment in business operations.

(iii) Other financial assets have reduced from 2,124.11 million to 274.11 million, primarily due to the disclosure of recoverable from Diligent Media Corporation Limited (DMCL) of 1,700.00 million as a Capital Advance, as explained above.

Other current assets which include tax assets have increased by 178.54 million, primarily reflecting indirect tax credits available.

EQUITY & LIABILITIES:

Total equity includes Equity Share Capital and Other Equity. The equity share capital of 625.43 million remains the same as last year. Other Equity comprises of capital reserve, securities premium, general reserve, and money received against warrants, in which there is no change in the current year, while retained earnings and other comprehensive income have declined in totality by 689.54 million, reflecting the results of operations of the year.

NON CURRENTLI ABILITIES

Non-current Borrowings have reduced by 416.36 million reflecting the Companys continued effort to reduce debt by repayment of long-term bank borrowings and partial redemption of NCDs.

Other Non-current lease liabilities have decreased by

22.36 million in line with terms and tenure of the lease.

Non-current Provisions have reduced marginally by 32.40 million, in line with actuarial valuation.

CURRENTLI ABILITIES

Current Borrowings have increased by 236.80 million to 752.34 million, primarily due to increase in working capital borrowings.

Current lease liabilities have reduced by 93.7% to 16.71 million upon closure of certain leased premises.

Trade payables have increased by 256.28 million, primarily due to the in-roads being created by our digital business.

Other current financial liabilities have remained on similar level, increased to 1,470.24 million from 1,463.23 million.

Other current liabilities have declined marginally by 17.66 million, from 282.13 million to 264.47 million.

Current provisions for employee benefits have reduced marginally by 5.29 million, in line with actuarial estimates.

Current tax liabilities (net) stand at 7.78 million as at end of the year.

DETAILS OF SIGNIFICANT CHANGE IN KEY FINANCIAL RATIOS:

Ratio	FY23	FY22	% Change	Remarks for > 25% or < -25% Change
Debtors Turnover (x)	3.81	3.64	4.66%	-
Inventory Turnover (x)	-	-	NA	-
Interest Coverage Ratio (x)	1.21	1.90	-36.09%	Reduction in EBIT on account of drop in revenue and increase in costs was much more significant than reduction in Finance Cost.
Current Ratio (x)	0.71	1.67	-57.54%	Decrease is due to reclassification of 1,700.00 million from current financial assets to non- current assets upon execution of the settlement agreement (Refer note 51 in consolidated financial statements).
Debt Equity Ratio (x)	0.51	0.47	7.91%	-
Operating Profit Margin (%)	9.10%	29.26%	-68.90%	Reduced due to reduction in Operating Profits.
Net Profit Margin (%)	-9.55%	-13.58%	-29.69%	Due to lower Exceptional item loss and tax credit in FY23 against expense in FY22, the reduction in Profit Before Taxes was adequately balanced and the net loss was reduced significantly, thus improving the Net Profit Margin.
Return on Networth – RoNW (%)	-17.76%	-25.80%	-31.16%	Due to lower Exceptional item loss and tax credit in FY23 against expense in FY22, the reduction in Profit Before Taxes was adequately balanced and the net loss was reduced significantly, thus improving the RONW.